How Tabarnapp Grew Its Value Ten-Fold in 24 Months
“Derek Morin founded Tabarnapp, a Shopify platform, in 2016. In 2022 Morin sold his business for ten times the value that was established two years earlier,” shares Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business. “In this episode you’ll learn how to create a bidding war for your business and negotiate a favorable earn out when selling.”
In 2016, Derek Morin founded Tabarnapp to create after-market sales applications for Shopify website owners. The company was an instant hit, generating more than 1,000 paid customers in its first few months after launching on the Shopify platform.
In 2020, Morin acquired one of his partners’ stake in Tabarnapp, valuing the company at $400,000. Two years later, Morin sold Tabarnapp for a much higher price, implying a tenfold increase in the company’s value. In this episode, you’ll learn how to:
- Utilize a clever accounting strategy to maximize the value of your business.
- Identify unique opportunities within your market.
- Choose a suitable pricing model for your company.
- Incite a bidding war for your business.
- Negotiate a favorable earn-out structure.